Location: Prairie County, AR | Metro: Little Rock-North Little Rock-Conway, AR HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
U.S. Census Bureau data (2024)
The investment landscape for Section 8 properties in ZIP code 72064 presents several critical challenges that must be considered. Firstly, tenant turnover is a significant concern. The market rent stands at $833, which is notably lower than the Fair Market Rent (FMR) of $1040 for fiscal year 2024. This disparity suggests that tenants might be more inclined to move when they find better deals, leading to higher turnover rates. High turnover can be costly, involving frequent maintenance, cleaning, and administrative tasks.
Vacancy exposure is another risk factor. With no data available on the days on market (DOM), it's unclear how quickly vacancies might fill. However, given the low market rent compared to the FMR, landlords should anticipate potential difficulties in attracting and retaining tenants, especially those who rely solely on Section 8 vouchers. This could result in extended periods of vacancy, reducing cash flow and increasing the financial burden on the property owner.
The deferred-maintenance exposure is also considerable. The median household income in ZIP 72064 is $63,897, but without a typical home value, it's challenging to gauge the financial capacity of residents to cover additional maintenance costs beyond their rent payments. Landlords must prepare for the possibility of having to bear these costs themselves, which can be substantial over time.
Despite these risks, there are factors that mitigate them. The renter share in the area is 23.9%, indicating a high concentration of renters. A large number of renters generally translates into higher demand for rental assistance programs such as Section 8. This demand can help stabilize occupancy rates, even if the market rent is below the FMR.
Verdict: Moderate risk for a first-time Section 8 landlord. The high renter share offers some assurance of demand, but the low market rent and potential for deferred maintenance costs present significant challenges that require careful management.
Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.